What does the term "production activity"
The company activity is the process, which includes not only the production of goods or provision of services, but also financial-economic activity, logistics, sales, use of labor and material resources, equipment and technology. The enterprise – structured and a living organism.
The structure of any business includes management personnel, production Department, Finance and Economics Department of accounting and reporting. In addition, the structure can include other units, whose task is to ensure the continuous production process and manufacturing products that would be competitive and meet the quantity, quality and delivery demands of the market. Thus the basic requirement and criteria of efficiency of the company is to minimize production costs, i.e. reducing the cost of goods and services.
The factors that determine production and economic activity of the enterprise
The efficiency of production and economic activities of enterprises primarily depends on factors such as the security of production facilities, the status of production and technological base, its technical and organizational level, how the organization of production and labour meets the modern requirements of the market and the market.
Of great importance to the activities of the enterprise is of such factors as economic and financial planning. It is not only uninterrupted supply of necessary resources, but also constant control over the current activity of the enterprise operational change management solutions in order to achieve the planned results.
Control is carried out through the analysis of production and economic activity of the enterprise by comparing the main results of this activity with the calculated and planned. To the indicators characterizing the efficiency of the enterprise, for example, include:
- profit from sales of goods and services;
- total production costs;
- profitability;
- the level of remuneration of employees in the company of people;
- the amount of funds on settlement accounts of the enterprise;
- existing accounts payable and accounts receivable.